M I N U T E S ASC-2005-4
The Audit Subcommittee met on May 26, 2005, at 8:40 a.m. in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Dr., Brampton.
|Members Present:||N. Iannicca, E. Kolb, R. Paterak, N. Stewart|
|Members Absent:||G. Miles|
|Also Present:||D. Labrecque, Treasurer and Commissioner of Finance; K. Ward, Commissioner of Housing and General Manager of Peel Living; M. Zamojc, Commissioner of Public Works; I. Murray, KPMG; K. Travers, KPMG; B. Wilson, Director, Internal Audit; J. Payne, Legislative Co-ordinator, Clerk's|
Chaired by Councillor N. Stewart
1. DECLARATIONS OF CONFLICTS OF INTEREST
2. APPROVAL OF AGENDA
That the agenda for June 16, 2005, Audit Subcommittee meeting be approved.
a) KPMG 2004 Management Letter & Audit Findings Report
Mitch Zamojc, Commissioner, Public Works, provided a brief introduction noting that the presentation would address the specific responses by the Public Works department to the "2004 KPMG Management Letter and Audit Findings Report". In addition, the structural changes within Public Works resulting from the implementation of a "Controllership Model" (*defined below) would be highlighted for the benefit of the Members of the Audit Subcommittee.
Mitch Zamojc addressed the KPMG 2004 audit report finding regarding the time lag between costs incurred and the billing process on the York-Peel water contract. KMPG recommended that a formal third party billing process be established to allow for regular and timely billing of third party shared costs. In response, Public Works staff initiated a process review and implemented new timely billing processes in fiscal 2004.
Mitch Zamojc responded to the KPMG audit report finding regarding an accrual error resulting from a double entry. KPMG recommended that year-end cut off procedures be enhanced to ensure the year-end adjustment approval process can detect significant errors. Public Works has responded to the KPMG recommendation by implementing more centralized processes and procedures to avoid errors of this type in the future.
Shaun Hewitt, Director, Business and Information Services, Public Works, provided context for the audit report findings as they relate to Public Works, noting the following three factors:
Shaun Hewitt defined the *"Controllership Model" in terms of a private sector corporation where there is a head office "Controller". In the Regional model this role is fulfilled by the Finance department and branch office "Controllers" - the role filled by the newly established business unit in Public Works. This structural change has created a strong financial focus in Public Works and has strengthened the relationship between Public Works and Finance. Additional structural enhancements in Public Works include:
In summary, Mitch Zamojc confirmed that recommendations from KPMG have been acted upon, the "Controllership Model" has been established; benefits are being realized from new reporting tools and procedures, and the Public Works department will continue to review processes and procedures to ensure proper financial management within the department.
Chair Kolb asked the External Auditors from KPMG if they were satisfied with the structural changes in the Public Works department. Kevin Travers, Senior Manager, KPMG, referred to the KPMG audit report findings, noting that the review of controls did not indicate any issues and no errors were found beyond those already discussed, for 2004. Ian Murray, Partner, KPMG, added that the presentation provided by Public Works staff was appropriate and that the Public Works department is focused on implementing the necessary corrective steps.
b) KPMG 2004 Audit Findings Report for Peel Housing Corporation
c) Appointment and Remuneration of Auditors for Peel Housing Corporation
6. SCHEDULE OF FUTURE MEETINGS
7. OTHER BUSINESS
The meeting adjourned at 9:00 a.m.